1. Legislative Relations

  • Territorial Extent of Legislation: This specifies the territorial limits of the laws passed by Parliament and state legislatures. Parliament can legislate for any part of India, while states legislate for their territories.
  • Distribution of Legislative Subjects: Based on the Seventh Schedule, powers are divided into three lists:
    • Union List (Parliament-exclusive subjects like defense and foreign affairs)
    • State List (state-exclusive subjects like public health and agriculture)
    • Concurrent List (both Parliament and states can legislate, like criminal law and marriage).
  • Parliamentary Legislation in State Field: Parliament can legislate on State List matters in five exceptional circumstances (e.g., national emergencies).
  • Centre’s Control over State Legislation: Mechanisms allow the central government to oversee and sometimes limit state legislative authority.

2. Administrative Relations

  • Distribution of Executive Powers: Mirrors legislative distribution; however, for Concurrent List matters, states exercise powers unless specified otherwise.
  • Centre’s Directions to States: The Centre can issue directives to states to maintain compliance with laws, which can lead to central intervention if a state resists (Article 365).
  • Mutual Delegation of Functions: Allows for cooperative function transfer between Centre and states to reduce rigidity.
  • All-India Services: Services like the IAS and IPS operate across both levels of government, ensuring administrative cohesion and quality.
  • Integrated Judicial System: India has a unified judiciary to enforce both central and state laws, unlike dual systems in other federations.

3. Financial Relations

  • Allocation of Taxing Powers: Parliament has control over Union List taxes, while states have powers on the State List. The 101st Amendment enabled concurrent taxation power for GST.
  • Distribution of Tax Revenues: Tax revenue is divided, with some taxes collected by the Centre being shared with states (e.g., income tax).
  • Grants-in-Aid: These include statutory grants (for states in financial need) and discretionary grants, allowing Centre to influence state finances.
  • Finance Commission: Recommends the distribution of tax proceeds between the Centre and states to ensure fiscal balance.

4. Relations During Emergencies

  • National Emergency (Article 352): Expands Centre’s authority over states.
  • President’s Rule (Article 356): Centre assumes state functions if a state government cannot function per constitutional provisions.
  • Financial Emergency (Article 360): Enables the Centre to direct states on financial management and spending adjustments.

5. Trends and Issues in Centre-State Relations

  • Tension Areas: Persistent issues include governor appointments, the use of President’s Rule, financial allocations, and management of centrally-sponsored schemes.
  • Reform Efforts: Commissions like the Sarkaria Commission have recommended reforms to balance central and state powers, emphasizing cooperative federalism and functional adjustments rather than structural changes.